Itau Agrees to Pay Citi $1.37 Billion to Reclaim Credicard
This article is for subscribers only.
Itau Unibanco Holding SA, Latin America’s largest bank by market value, agreed to buy Citigroup Inc.’s Credicard unit for 2.77 billion reais ($1.37 billion), gaining an additional 10 percent share of Brazil’s card market.
Itau will add about 4.8 million accounts with the acquisition of Credicard, a company it helped create, according to a filing yesterday. Sao Paulo-based Itau also will acquire Credicard’s consumer-finance business. The sale is expected to result in a gain of $300 million, or 10 cents a share, for Citigroup, the New York-based bank said in a statement.